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Non-transparent ETFs: Investing Innovation or Complication?

Non-transparent ETFs: Investing Innovation or Complication?

For years, there was little innovation in the investment industry. Stocks, bonds, mutual funds – that was pretty much the range of choices for investors. Exchange-traded funds, first to the market in 1993, changed all that. ETFs are touted for their tax efficiency, liquidity and low costs. But asset managers are looking to develop a new ETF spinoff that would remove one core characteristic of these popular investments: transparency.

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The Obamas Paid a 20% Effective Tax Rate, What’s Yours? (Hint: It’s Probably Higher)

The Obamas Paid a 20% Effective Tax Rate, What’s Yours? (Hint: It’s Probably Higher)

Before you click “send” to e-file your taxes or lick the stamp to mail them in, do a quick calculation: check your tax form and divide your “total taxes” by your “adjusted gross income” to determine your effective tax rate. For example, President and Mrs. Obama filed their joint return for 2013, paying $98,169 in federal taxes on $481,098 in income. That’s an effective tax rate of 20.4%.  Bet that’s lower than yours.

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Why Financial Advisors Fire Clients

Why Financial Advisors Fire Clients

Have you ever received notice that your account was being transferred to a new (more than likely novice) broker? Or worse yet, to a firm’s call center located a time zone or two away? If not, you may soon. Financial advisors are working diligently to reduce their client rosters, and the reason for doing so is likely just exactly what you would expect: profitability.

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How to Contribute to a Roth IRA When You Make Too Much Money

How to Contribute to a Roth IRA When You Make Too Much Money

The Roth IRA is the ticket to tax-free income for life after work. Pay your government dues now, and then never again. That’s great until you bump into the barrier of ineligibility. With strict restrictions on the amount of money you can make and still qualify to contribute, the Roth can have a closed-door policy on participation. Unless you go through the back door.

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Financial Services Industry May Have to Face a “Massive” Class-Action Lawsuit to Change

Financial Services Industry May Have to Face a “Massive” Class-Action Lawsuit to Change

Generally, the average investor makes bad decisions, earning less -- in many cases much less -- than market returns allow. That’s the conclusion of the 20th annual “Quantitative Analysis of Investor Behavior,” (QAIB) conducted by Dalbar. And it might take a “massive” class-action lawsuit to change the industry, according to Dalbar president Louis S. Harvey.

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